How to Declare Oneself Bankrupt

It can happen too many of us, going bankrupt, that can be something which is not easy to take and is devastating at the best of times because it can be an area that we haven’t explored until it happens to us.  That is why even when you think your money is OK and that your finances are actually in a great position possible that you can’t get any worse but then you find that everything starts to fall apart and then you have to take drastic action.

When you file for bankruptcy then you could do that whether you are an individual or if you have got a business but you have to be in a position which your finances are completely in ruin and that you cannot actually pay back your debts.

There are more than just one form of bankruptcy however because it really all depends on your debts and their amounts and what you are really bringing in and what you have in form of possessions.  Though with bankruptcy then this can be your last option for your debts which usually will be a large amount.

So how can you declare yourself bankrupt?

bankruptcy

Bankruptcy

What you first have to do is to get everything concerning your finances all in order; this is so that you have got everything with you like the costs of bills and debts, any income that you have, expenses and of course a list of any assets that you have.  Then take these and bank statements and any tax returns – a copy of these – to your lawyer in which will file your bankruptcy claim.

There is bankruptcy such as chapter 7 that will be for those that have small incomes and really don’t have any assets to pay your debts off again.  With this then non exempt assets can be then liquidated so that your debts can be paid back.

Unlike chapter 13 which can say that you can repay the debt back within two to five years but you are going to be able to keep your home with this unlike chapter 7.

You should really think about getting some credit card counseling so that you can see if you can solve your debt problems or find a way for you to pay back before you file bankruptcy though this has to be done at least six months before bankruptcy.

You are going to have to go to your lawyer or any lawyer so that you can start a petition for bankruptcy or you may find that you can file yourself in a court.  These forms can be found online in the US and it is going to cost you almost twenty hundred and fifty dollars and if you have a trustee in place then it will cost around fifteen dollars.  This is for chapter 7 bankruptcy however but for chapter 13 it is a little cheaper for filing.

You should be going to all bankruptcy hearing which is around a month or longer after you have filed which means that you will be seeing your creditors while in court.

If the paperwork is filed correctly then the court dates will be much smoother, if you are going with chapter 13 then you can pay the debts within the allotted time or you will be declared bankrupt.

The best way to have debt cleared

Debts Clearance

Debts Clearance

Find out the most effective ways of clearing debt and choose the best way. Begin clearing debts today. In case you are looking for a good way to clear debt, relax, someone’s with you. A Report from Federal Reserve G.19 about consumer credit in the US showed that in the money owed on store and credit cards, also recognized as revolving debt, amounted to $15,788 in May 2010. Clearing debt is not using, is more so in case you are from a family with too much debt to continue with life comfortably.

In case you are situation cannot allow you to pay down debts, you can minimize the bloody through  debt relief program, for instance a debt settlement program, debt management plan or option for bankruptcy. Clearing debt is much easier since there are ways to help you quickly clear the debts affordably. Each solution to get has its advantages and therefore it is necessary to contemplate on the advantages and disadvantages of each, before opting for an agreement.

In case you are not employed in the debt of money to pay your creditors, the best way to have your credit card and loans cleared can be via bankruptcy. This can clear all of debts which are unsecured and not make any more payments to creditors. After petitioning the court, it is against the law to be contacted regarding your debts. Clearing unsecured debts takes only four months.

The bankruptcy laws in the US were changed in 2005, through the bankruptcy abuse prevention and consumer protection act. During the 12 months which ended on 1st March 2010, a sum of 1,057,686 people, filed under the bankruptcy law. You will now need to protest against the court via demonstrations that your income does not meet the median level required for your state and that you have not nonexempt assets, for example, luxury sports car or a second home, to be repossessed.

Although this might not be the quickest way of debts clearance, debt management plan is an effective method of managing small amount of money owed to various creditors. An individual calls the debt collection agencies to gain a level of contribution out of the disposable income you get.

Bankruptcy or an IVA: Find a better option!

Consumer debts have become a grave issue in the face of UK economy. They are constantly defaulting and over burdening themselves with debt. People are frantically looking for a debt relief option to get out of debt. But surprisingly! They are unable to decide which would be a better option for their financial situation whether filing bankruptcy or an Individual Voluntary Arrangement (IVA). Through this article you will get the required information on both the programs.

Bankruptcy or an IVA

Bankruptcy or an IVA

What are the eligibility criteria for bankruptcy and an IVA?

  • If you are jobless and financially strapped then bankruptcy would be a better option. In order to file for bankruptcy you need to submit relevant documents and pay for the court charges. But remember, if you owe over £750 then you are considered to be eligible to file bankruptcy.
  • If you are considering an IVA then make sure that you have a stable income. IVA would be the right option for you if you want to avoid the hassle of bankruptcy.

Here are the main advantages and disadvantage of bankruptcy and its effect after filing:

  • With the approval of the bankruptcy filing your debts would be discharged immediately. Once the court grants your petition you would get liberated from the liability of debt
  • If you have a stable income then the court appointed trustee would design a repayment plan or you so that you pay back your creditors. This is known as income payment order. If you do not want to part with your asset then this plan would prove to be beneficial.
  • Before you file for a petition you need to go for a credit counseling session. That would help you to evaluate your financial condition and prevent you from further getting into debt.
  • You can open a new bank account after your bankruptcy is discharged but you have to undergo certain conditions. But before you apply for a new account reveal the fact that you are a bankrupt.
  • Filing bankruptcy can adversely affect your credit rating. Effect of this on your credit file would remain for six years that would create hindrance if you plan to take out a loan.
  • In case you have incurred debts through frauds, certain crimes and fines then filing bankruptcy won’t help to discharge your debt.
  • If you want to file bankruptcy again then you have file after 15 years from the date of your initial filing. If it has been five years since your recent filing then you are eligible to file a petition in the court. But you have a risk as the court may delay the discharge or dismiss the petition.

Here are the main advantages and disadvantage of an IVA and the after effects of an IVA:

  • Unlike bankruptcy you can protect your valuable assets while eliminating your debts.
  • Any individual can opt for an IVA if he has a stable income. And avoid the negative consequences of filing bankruptcy. You have five years time to pay back the owed amount that you can afford.
  • In this program you can even help to negotiate with your creditor to lower your outstanding balance.
  • On opting for IVA you get protection from the court against the creditor harassment.
  • Expenses of filing bankruptcy are higher than IVA program.
  • But if you fail to have a proper income then you are not eligible for an IVA.
  • The creditors may not agree with the proposed amount of the negotiator.
  • While you are in the IVA program you may be able to apply for an unsecured.
  • You credit report is blemished for six years.

This is a guest post by the Webmaster of Fileyourbankruptcy. Here he provides exclusive information on all types of bankruptcy.